On Nov. 29, UK GVT issued regulations on turnover based penalties.
UK GVT issued Enterprise act 2002 (merger and market investigations) (determination of control and turnover for penalties) regulations 2024 (StIn 2024/1236).
Follows UK GVT Jul. 2024 proposed DMCCA turnover and control regs, see #221361.
Purpose
This instrument makes regulations under sections 94AB(9)-(11), 111(9)-(11), 167B(9)-(11), 174D(11)-(13) of the Enterprise act 2002 (2002 Act), as amended by the Digital markets, competition and consumers act 2024 (2024 Act).
Regulation sets out how UK CMA calculates turnover for purposes of enforcement of competition law and and defines when a person is deemed to control an enterprise.
2024 Act amends 2002 Act to allow UK CMA to impose an appropriate turnover-based penalty for failure to comply with an investigative requirement or breaching a remedy (i.e., an undertaking or order) agreed or imposed under Pt 3 or Pt 4 of 2002 Act.
Penalties are turnover-based, incl fixed penalty up to 1% of global turnover and/or a daily penalty up to 5% of daily global turnover for noncompliance with measures.
In addition to a fixed penalty of up to 5% of worldwide turnover and/or a daily penalty up to 5% of daily worldwide turnover for breaching a remedy.
